Sri Lanka shares hit 2-wk closing low ahead of cbank rate review

Reuters Staff

COLOMBO, March 29 (Reuters) - Sri Lankan shares closed at a
two-week low in thin trade on Tuesday, led by blue chip shares,
as concerns over economic growth and rising interest rates
weighed on sentiment ahead of a decision on interest rates by
the central bank.

The Central Bank of Sri Lanka is expected to raise key
interest rates by at least 25 basis points late on Tuesday, a
Thomson Reuters poll showed, as it seeks to reduce downward
pressure on the fragile local currency.

The benchmark share index ended 0.5 percent, or 30.20
points, weaker at 6,031.85, its lowest close since March 16.

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"There are no positive catalysts to push the market up. The
index will come down further with foreign investors exiting
intermittently and the expectation of further rate hike," said
Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.